Cargo handling businesses recorded a boom in the first quarter of 2021, as aviation handling companies made N2.63 billion (import and export) against N2.53 billion recorded in the same period in 2020.
This was extracted from the Q1 2021 financials of Nigerian Aviation Handling Company Plc and Skyway Aviation Handling Company Plc (major Aviation handling firms in Nigeria).
For instance, SAHCO, the Aviation handling firm, made N1.44 billion from its cargo handling services, up from the N1.32 billion recorded in Q1 2020.
Cargo handling in SAHCO Plc also includes income from cargo documentation services rendered to airlines, which include import and export cargo facilitation through Nigeria’s biggest network of customers, bonded warehouses in Lagos, Kano, Abuja, and Port-Harcourt.
In the case of NAHCO Aviance Plc, it made N1.19 billion from import and export cargo handling within the first three months of 2021. This is against the N1.22 billion recorded in the same period in 2020.
Cargo handling includes invoices raised for cargo documentation services for airlines, import, and export.
What led to the cargo revenue growth?
While commercial airlines are still struggling to come out of the woods after they recorded losses from their passenger businesses in 2020, cargo handling companies were able to avoid a similar fate.
The cargo aspect of their revenues has witnessed an increase over the years, as airlines continued lifting goods, especially essential items such as medical supplies, and personal protective equipment (PPE) during the pandemic.
What you should know about cargo revenue
NAHCO, Nigeria’s oldest cargo handling company, recorded revenue growth in import cargo handling from N3.60 billion in 2019 to N3.65 billion at the end of 2020, according to Nairametrics.
Revenue from its export cargo business rose from N348.6 million to N397.4 million in 2020.
Cargo handling includes invoices raised for cargo documentation services for airlines, import, and export.
SAHCO, on the other hand, reported that its import handling revenue rose from N4.436 billion in 2019 to N4.865 billion. It also grew its cargo handling export revenue from N318.38 million recorded in 2019 to N447.90 million in 2020.
